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"such enterprise, as being not less for the "best interests of China than for our own, Already various concessions have been ob- "tained by British subjects for the building
of railroads and the working of mines. The Chinese Government should be made clearly to understand that such rights cannot in future be ignored with greater impunity than if they belonged to Rus sians, Germans, or Frenchmen; and that "it will be held responsible for obstruction or outrage whether arising spontaneously "from popular superstition or from the in- "citement of local Mandarins. Our policy "of leaving private interests to take care of "themselves must be abandoned. Other "Governments give a strenuous support to the enterprise of their subjects, and we must do the same, or we shall very quickly find ourselves in the position of mere 'spectators with reference to the coming development of China." Considering the magnitude of our present interests and the enormous possibilities in the future, if China is to be opened up by railways through her length and breadth, if her resources lie properly exploited, and if industries be developed in her com- mercial centres, the stake is worth playing boldly for, and we trust that there will in the future be no half-heartedness in the conduct of relations with the Tsung-li Yamen. It is merely throwing pearls before swine to waste words on officials of the type of Lt HUNG-CHANG. The British Govern- ment should always know what it wants, and let its representative have a free hand in carrying out its instructions.
C4
mineral
CHEQUES AS A RELIEF FOR THE
SCARCITY OF BANK NOTES.
Some little relief from the existing scarcity of bank notes might possibly be found in the more extensive use of cheques drawn for smaller amounts than that now generally recognised as the minimum allowed by the Banks, namely, ten dollars. As a matter of fact cheques are frequently drawn for smaller amounts, but their acceptance by the Banks is a favour upon which the public does not venture to presume too far. Some few years ago a similar state of affairs prevailed in Ceylon to that now existing in this colony and an agitation was set on foot for the reduction of the minimum cheque amount from ten rupees to five. The Banks complied with the wishes of the public in the matter, and the increased convenience was, as far as we were able to gather from the local newspapers at the time, much appreciated. Payment by cheque is, of course, attended by some extra expense, on account of the stamp duty, which would operate against its being very largely adopted as a substitute for notes of small denomination. To pay away $1,000 in cheques of five dollars each, for instance, would cost $4, whereas bank notes, when the supply is equal to the demand, can be obtained without the payment of any premium, the duty of one per cent. per annum being paid by the Banks, which find the business a profitable one, as they are only compelled to keep a reserve in specie of one third of the value of the notes in
circulation and can use the other two thirds in their business, realising upon it probably six per cent, or more. Still, although cheques cost the public more than bank notes, they are a great convenience, and if the Banks would give their sanction to the reduction of the recognised minimum for which they may be drawn to five dollars no doubt they would be more extensively used than they now are in payment of small,
accounts.
THE HONGKONG WEEKLY PRESS AND
The increased use of cheques, however would only be a palliative, not a cure, for the existing inconvenience. Cheques will not pass from hand to hand like notes or swell the volume of currency to any very considerable amount. It follows, therefore, that we must have either an increased note issue by the Banks or a Government note issue, and, for reasons explained in a pre- vious article, the latter would be the preferable. An instance illustrating the inconvenience of the existing state of things has been mentioned to us. After the arrival of the last Americau mail somo Chinese merchants took their bills to the Banks to sell and they were offered pay. ment in British dollars. This did not suit the merchants, who wanted notes which they could pay away in the course of their business, arguing very reasonably that when they wanted to make payments they could not do it conveniently by means of sycee in boxes. Ultimately they were acconi- modated, but not without a great deal of trouble. The non-expansive character of the present note issue is becoming a serious hindrance to trade, and the subject is one that ought to be taken up by the Government without delay.
turer
BRITISH TRADE AND THE
COST OF CARRIAGE.
C
|July 16, 1898.
'pay dock dues, etc., besides." -On the Continent of Europe also there is co-opera- tion between railway and shipping com- panics, which takes the form of a through rate of freight from the manufactory in the interior to the destination abroad. From this it follows, says Mr. LAY, that “ even if the Shipping Conference succeeds, in obedience "to the agitation now going on in Eng "land, in increasing rates from the
"t
"4
"Continent to the same level as those from "Eugland the British trade will still be at a disadvantage, because the Continental shipping company will be still able to ar range with the railway company to receive a corresponding rebate on its share of the "journey. In England, where the rail- ways and steamship companies work inde pendently no such arrangement can be "made."
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F
SCARCITY OF MONEY AND THE GOLD STANDARD.
of the gold standard in Hongkong would When it is urged that the introduction be followed by a large influx of much needed capital the reply is sometimes_made that no such influx has taken place in Japan, although the change of standard was made there chiefly for the purpose of attracting it. Foreign capital will not come to Hong. kong, because the investor has an uneasy Mr. LAY, Assistant Japanese Secretary to feeling that when he wishes to withdraw it Her Majesty's Legation at Tokyo, in his he may receive only ten or fifteen shillings report on the foreign trade of Japan for the for every sovereign invested. In Japan he year 1897 draws attention to some points in incurs no danger of loss by exchange, but which the British merchant and manufac- there are other conditions which make are placed at a disadvantage in capitalists diffident about investing there, competing with their rivals. The cost of namely, uncertainty as to the security carriage is a material item in determining and as to the commercial law of the price at which goods can be placed upon the country and its administration. Japan, the market, and in this respect the Britisher therefore, cannot be taken ns afford- is heavily handicapped. The Shippinging any indication of what the_results of . Conference Mr. LAY regards almost with introducing a gold standard in Hongkong approval, for he says its power has not been would be. The question of introducing abused and rats have been maintained at a foreign capital into Japan bas recently been reasonable level. He points out, however, under the consideration of the foreign and that the general tendency of the Conference native Chambers of Commerce. The Hiogo is to stimulate foreign shipping as against Chamber (foreign) has insisted that the British, and also that so strong and offer of trustworthy security, such as the "extensive is the influence of the Confer- ownership of land, is an indispensable pre- ence in Great Britain that no outside liminary to the introduction of foreign steamer can obtain a cargo, even in spite capital. The Hiogo News says there is cer- "of the fact that freights on iron from tainly a growing recognition of this fact "Great Britain are often 5s. per tou higher among Japanese business men, and the "than from Antwerp, and from 5s, to 78. 6d. absurd restrictions now imposed must before per ton higher than from Hamburg. It long give way before the force of circum- might be well," he adds, "for those who stances. If that be so, and the restrictions are seeking the causes of the decline in
are removed, Japan will soon be placed in "British trade to direct their attention to possession of an abundance of capital for "this serious difference." The existence of the development of her resources. such a difference seems hardly consistent with Mr. Lay's opinion that the power of the Conference has not been abused. But the British merchant or manufacturer has not only to pay more than his rivals for water carriage, but is also placed at a great disadvantage in the matter of railway faci- lities. Owing to the co-operation between railways and steamers in the United States iron, Mr. LAY says, can be shipped from the Eastern States to the Pacific coast and thence by steamer to Japan at rates averag- ing about 35s. for the whole journey, "whereas rail from Glasgow to Loudon "would cost 30s. per tou alone, and the freight to Japan would be at least "32s. 6d. per ton, a total of 62s. 6d.
per ton.
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Besides which the Ameri- can maker delivers the goods to the "carrier at his own door and obtains a "through bill of lading at once, whereas "the Glasgow shipper would have to deal "first with the railway company and then “with the steamship company, and probably
THE INLAND, NAVIGATION RE-
GULATIONS.
In our leader of the 2nd inst. we dealt
with the question of the opening of inland waters and Mr. CURSON'S statement, ns telegraphed by Reuter, that the British Government will insist upon the Chinese Government revising the Regulations. On the 5th inst. we gave the Regulations as published in the Shanghai papers. It is evident that our Shanghai contemporaries have published the rules as issued to the various Commissioners of Customs, and we are now in a position to inform our readers that these are by no means in accordance with the Minister's views on the subject. Why and how these came to be issued with- out having first received his sanction we will not stop here to enquire, but pass on to the amendments which he has presented to the Yamen and which we hope shortly to see become law, as Mr. CURZON's speech seems